The scam empire of Chen Zhi was busted, and 15 billion worth of Bitcoin was confiscated. But why are the "legitimate" businesses still operating?

After the news of Prince Group founder Chen Zhi’s arrest in Cambodia and his repatriation went viral, a seemingly contradictory phenomenon drew attention: although the founder has been apprehended, with the US seizing nearly $15 billion worth of Bitcoin, and Singapore freezing about 800 million yuan in assets, its affiliated businesses such as Prince Bank and Prince Real Estate are still operating normally. This seemingly ordinary business phenomenon conceals the truth of a massive online fraud empire.

The Disguised “Legal” Empire

The superficially glamorous business structure

Prince Group claims to be a real estate and financial conglomerate operating in over 30 countries, with divisions including Prince Bank, Prince Real Estate, and Prince Holdings. This complete business system has earned the group considerable social status and legal legitimacy in Cambodia and Southeast Asia.

But this is only surface-level. According to reports, Chen Zhi himself obtained Cambodian nationality by spending $250,000 and was branded as a “Cambodian Duke” and “Prime Minister’s Advisor,” adding an aura of prestige to the entire group.

The true face: an industrial-scale scam empire

The indictment reveals a far more shocking reality. Prince Group has established at least 10 closed scam parks in Cambodia, internally called “mobile farms.” Two of these sites alone are equipped with 1,250 phones, controlling 76,000 social media accounts to carry out “pig-butchering” scams.

This is not just simple fraud but an industrial-level criminal operation:

• Scam scripts tailored for different countries and regions, with internal manuals advising “do not use overly attractive female avatars to appear more authentic”
• Daily profits of $30 million (according to co-conspirators, based on 2018 data)
• Scam proceeds used to buy private jets, Picasso paintings, and to accumulate 19 luxury homes in London

Why are “Legal” Businesses Still Operating

Separation of Business and Crime

The reason Prince Bank, Prince Real Estate, and other business units can continue operating is mainly due to their relative legal independence. Although these businesses are nominally part of Prince Group, they may have independent management teams, financial accounts, and legal entities.

Chen Zhi’s arrest and asset freezes primarily target assets and accounts related to online fraud. As long as these “legal” business units are not directly involved in scams, they may continue to operate at this stage.

Complex Cross-Border Legal Issues

Prince Group involves jurisdictions in China, Cambodia, the US, and Singapore. The US seizing Bitcoin, Singapore freezing assets, and China repatriating Chen Zhi for investigation each focus on different aspects. Fully freezing or shutting down all operations requires coordination among various countries’ legal authorities, which often takes time.

Market and Regulatory Warnings

The Fragility of Crypto Assets

The most shocking detail in this incident is that the US government confiscated 127,000 Bitcoins (worth about $15 billion) held by Chen Zhi. Reports reveal that the private key generation tool for these Bitcoins had serious vulnerabilities; the normally 256-bit random private keys were simplified to 32 bits, allowing hackers to crack them with a script in just over an hour.

This directly exposes the myth of Bitcoin’s decentralization and security. Even those holding hundreds of thousands of Bitcoins can lose everything due to technical flaws.

Strengthening Law Enforcement

The US Department of Justice’s actions against Prince Group mark a new phase in the global crackdown on crimes related to crypto assets. From indictments to asset seizures and cross-border repatriations, this comprehensive law enforcement chain demonstrates that even hiding overseas cannot escape legal sanctions.

It also reflects a broader trend: governments worldwide are intensifying regulation and crackdown on transnational crimes such as online fraud and money laundering involving crypto assets.

Summary

The reason Prince Group’s “legal” businesses are still operating is not because they are truly legitimate, but because of complex legal procedures and delays in cross-border law enforcement. This case highlights several key points:

• A glamorous-looking business empire may hide industrial-scale crimes. Investors need to learn how to distinguish authenticity from deception and not rely solely on publicity and identities.
• Owning crypto assets does not equate to security. Proper private key management, tool security, and technical audits are crucial.
• Cross-border law enforcement is strengthening. No matter where you hide, illegal activities will eventually be prosecuted.

The collapse of this “online fraud empire” serves as a profound warning to the entire crypto community.